Glossary

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Account Application
The account application is the application to be completed and submitted to the Michigan Education Savings Program (MESP) along with payment, to participate in the Program. It incorporates by reference the Program Participation Agreement.

Account Owner
The account owner is the owner of an account in the Program.

Accredited School
An accredited school is a school deemed as accredited by a nationally recognized accrediting agency and is legally authorized by the state where the school offers post-secondary education to provide that education program. An accredited school must admit as a regular student only individuals with a high school diploma or its recognized equivalent, or individuals beyond the age of compulsory school attendance in the state where the institution is located.

Beneficiary
The beneficiary is the person named by the account owner in the account application.

Contingent Owner
The contingent owner is the person designated by the account owner on the account application to succeed to ownership of the account upon the account owner's death.

Coverdell Education Savings Account (CESA or ESA)
A Coverdell ESA is a trust or custodial account created or organized in the United States only for the purpose of paying the qualified education expenses of the designated beneficiary of the account.

Custodial Account
An account that is created for the benefit of a minor, with an adult (agent, bank, trust company, or other organization) as the custodian in accordance with applicable state law. With custodial accounts, control of the account transfers to the beneficiary at the age of majority (18 or 21 depending on state).

Custodial Account Application
This is an account application used by a custodian. Download the Custodial Account Application (PDF).

Custodian
An agent, bank, trust company, or other organization which holds and safeguards an individual's account assets for him or her.

Education IRA
See Coverdell Education Savings Account (CESA or ESA).

EGTRRA
EGTRRA is the Economic Growth and Tax Relief Reconciliation Act of 2001, as amended, and the Treasury regulations, pronouncements and publications thereunder.

Eligible Educational Institution
Accredited, postsecondary educational institutions offering credit toward a bachelor's degree, an associate’s degree, a graduate level or professional degree or another recognized postsecondary credential, including certain proprietary institutions and postsecondary technical and vocational schools and certain institutions in foreign countries, that participate in a financial aid program under Title IV of the Higher Education Act of 1965.

Entity Account Application
This is the account application used by trusts or estates, business entities, Internal Revenue Code Section 501(c)(3) organizations, or state/local governments. Download the Entity Account Application (PDF).

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